November 03, 2007

Emirates seeks A380 and 747-8 weight control

By Victoria Moores

Emirates president Tim Clark is optimistic that Airbus’ A380 weight-reduction programme will be successful, but outstanding weight concerns are hampering the airline from committing to the Boeing 747-8.

Dubai-based Emirates is due to take delivery of its first Airbus A380 next August. This will be followed by a further four in 2008 and within two years Emirates will operate 22 of the type.

Speaking at the World Air Transport Forum in Cannes, Clark said: “It is six tonnes overweight, that’s a fact about the A380, but the good thing about it is that Airbus has been working very hard to take weight out of the aircraft.

“We are very pleased to see that there is a definitive weight-reduction programme over the next few years to reduce the manufacturer empty weight by a few tonnes. Of course, that is of great interest to us and I am optimistic that they will get 50% of that weight out, maybe more.”

Clark is eager to take delivery of Emirates’ first A380. He says he is immensely relieved that the first aircraft has been delivered and describes Singapore Airlines’ A380 cabin configuration as “an absolute show-stopper”.

He remains tight-lipped on Emirates’ initial A380 routes, while awaiting definitive dates from Airbus. But he says: “The aircraft that we are taking is the long-range version, so that will be operating on our very long-haul network to New York and Australasia. It may be flying, when we first get it, on some of our European operations.”

Emirates will operate its A380s in three configurations. Its crew rest-equipped long-range versions will house 489 passengers in a three-class configuration, while the non-crew rest version will accommodate 531 passengers. Emirates is also planning to operate some of its A380s in a two-class layout, with 617 passengers.

Clark says Emirates is still interested in the larger A380-900, which he claims would be a simple, but low-demand, stretch. Emirates would configure the aircraft with 531 seats in three classes or around 700 in a two-class layout.

He says: “We are still interested in [the A380-900]. We could do with a few of those now. It is an easy one to do because the wing is there, the propulsion is there. All they need to do is stretch the fuselage and ‘bingo’. I am sure it will come.

“There won’t be many of us who want it, but at that point it doesn’t matter because the manufacturing economics become incremental. They’ll have gone through the 200 or 300 they need to break even and beyond that, to stretch the aircraft, would be a $2-5 billion investment. We’d take it straight away.”

Clark says Emirates would consider the 747-8 if it met the airline’s requirements, but he is again concerned about weight. He says: “It is not there yet either. We are not ready to sign a contract. We’ve got to be sure that they would deliver the aircraft on the table at the moment, which will require some copper-bottomed guarantees.”

Emirates is also working with both Boeing and Airbus to find ways of cutting controllable weight across its in-service fleet, evaluating options such as shifting some of its paper literature into its in-flight entertainment system.

Clark says: “We are looking at multiple ways to take weight out of the aircraft – that’s weight that we control, like catering, galleys, carts, carpets, seat weight, water, magazines. We are working with both Boeing and Airbus to find ways and means of stripping weight out from the aircraft in a very pro-active manner.”

Losses confound Pakistan Airlines chief

Karachi: Six months into the job, the head of Pakistan International Airlines (PIA) said he was still wondering how to turn the company around as losses since the start of 2006 exceed half a billion dollars.

PIA chairman Zafar Ahmad Khan said he was "confused and disappointed" after the airline on Wednesday reported a quarterly loss of Rs3.2 billion, taking its accumulated loss from the start of last year to Rs35.5 billion ($584.3 million).

That total is about 2.5 times the market capitalisation of the state-run company.

"Right now there is disappointment over the results but this is reality and now we have to come up with a new game plan and new techniques," Khan said.

His predecessor Tariq Kirmani resigned in March 2007 in the wake of a humiliating ban by the European Union on most of its aircraft from flying to the continent because of safety concerns about its ageing fleet.

Ageing planes

The ban was lifted in June for specific Boeing 747s and Airbus A310s. The EU ban did not apply to the carrier's fleet of Boeing 777s.

Khan said while privatisation of PIA was 'way down' on the government's agenda, he personally would prefer it.

"I come from a school of thought that these institutions should be privatised, but this is my personal view," he said.

Khan gave no clues as to when he expects PIA, which has been losing money since 2005, to turn profitable.

"I am confused right now, disappointed, and was hoping the airline would do better in these three months and it is my responsibility," he said.

"However as long as I am sitting in this chair, I will look at the future and I will want to make plans in the best interest of PIA." Khan said for now PIA's top priority was safety and a fleet replacement plan that could help reduce costs by getting rid of old, fuel guzzling aircraft.

PIA plans to replace its Boeing 737-300 fleet with seven new Airbus A320-200s leased from Kuwait's Aviation Lease and Finance. Deliveries are expected in 2009.

PIA plans to then replace its fleet of Boeing 747s and finally its Airbus 310s, Khan said.

Khan said cutting cost by laying off some of the 18,200 employees at PIA, which has a fleet of 42 aircraft, was not an option he was looking at right now.

"I reckon by international standards, PIA does have more people per aircraft. Down the road we will look into that, but this is not a priority or problem number one right now."

Abu Dhabi airport passes security audit programme

Abu Dhabi: Abu Dhabi International Airport (ADIA) has successfully passed the security audit programme administered by the Internal Civil Aviation Programme (ICAO). Mohammad Ganem Al Gaith, director-general of the General Civil Aviation Authority (GCAA) said: "Abu Dhabi International Airport's impressive compliance with ICAO's Universal Security Audit Programme is a testimony to the professionalism of the Airport management and staff and the high efficiency of the security system in place.

Jet Airways launches New Delhi - NY flights

Jet Airways announced the launch of a daily flight from New Delhi to New York’s John F Kennedy (JFK) International Airport, via its hub in Brussels. Jet Airways already operates daily flights on the Mumbai-Brussels- New York (Newark) sector. With the induction of this new daily Delhi- Brussels - New York (JFK) service Jet Airways will further complement and enhance the airlines’ services offering its passengers a second flight to New York city.

At Brussels, flights will be synchronized in order to provide passengers a seamless transfer between Delhi, Mumbai and Chennai to cities in North America - New York (JFK), Toronto and New York (Newark).

For the Delhi - New York (JFK) flight, Jet Airways will use a brand new Boeing 777-300 ER aircraft, which has been especially configured in a three-class configuration for international operations.

Jet Airways will operate into American Airlines’ brand new terminal at JFK and passengers will be able to connect to the American Airlines network.

Germany agrees to move Lufthansa cargo hub to Russia

FRANKFURT (AFP) - Germany has accepted the transfer of Lufthansa Cargo's central Asian hub from Kazakhstan to Siberia, bowing to pressure from Moscow after it blocked the carrier from flying over Russian territory.

"Discussions with the Russian transport ministry continue. At this time, it is above all a question of a timetable for the transfer of Lufthansa Cargo towards the Russian airport of Krasnoyarsk," Transport Minister Wolfgang Tiefensee said Friday in a statement.

The announcement signalled a possible end to a dispute that had seen Lufthansa cargo planes forced to make a costly detour around Russian airspace en route to the group's current Asian refueling and distribution point at Astana, Kazakhstan.

Russia banned Lufthansa Cargo from Russia airspace earlier this week after a permit allowing the airline to fly over the country expired. The ban was seen by some as an attempt to strong-arm Lufthansa into moving its hub from Kazakhstan to Russia.

Detours to avoid Russian airspace have increased the carrier's fuel costs by about 400,000 dollars (280,000 euros) per week.

The Russian transport ministry agreed on Friday to extend a temporary authorisation, allowing Lufthansa Cargo to resume flights over the country.

Tiefensee said that a precondition for a final accord was "the creation of infrastructure to enable flights to that airport (Krasnoyarsk) in any weather condition."

According to the Financial Times Deutschland, Krasnoyarsk lacks guides for fog-bound landings.

Lufthansa Cargo, a major air cargo carrier, uses McDonnell Douglas MD-11 freighters with a range that prevents direct flights to Asian capitals.

Lufthansa Cargo had appeared earlier Friday to be categorically opposed to a move to a Siberian city, with a spokesman telling Thomson Financial news agency it was "out of the question."

"Technical conditions at the airports mentioned absolutely do not satisfy international standards," the spokesman said.

Later, the group stressed that conditions at the airport needed to be upgraded and that the location of the hub should not be linked to the issue of overflight rights.

A statement said: "We don't agree that talks about overflight rights should be linked to demands for the transfer of the cargo hub.

"Lufthansa Cargo will only consider a move once operational and commercial conditions are established."

German officials had promised to respond by November 7 to Russian conditions that include a requirement that Lufthansa freight flights to southeast Asia make a stop on Russian territory, the Russian trade ministry said.

The spat is another example of trade tension between Russia and a European Union member, with relations strained between the EU and its giant neighbour to the east.

Polish meat exports to Russia and gas shipments from Russia via Ukraine to EU states have also raised tensions in the past year.

On Monday, cargo flights by the Russian airline Aeroflot were barred from landing in Frankfurt, but the measure was lifted the next day "as a goodwill gesture," according to a German transport ministry spokesman.

AIRPORT NEWS

Cologne-Bonn targets 10 million in 2007

Above: Record numbers of passengers travelled through Cologne-Bonn airport in September

Cologne-Bonn airport is well on target to reach the 10-million-passenger milestone in 2007. The airport registered a 6% increase in passenger traffic to eight million passengers during the first three quarters of the year. Cologne-Bonn expects traffic to increase by 5% this year, bringing the total number of passengers travelling via the airport to 10.4 million.

Another milestone was celebrated in September when the airport handled a record 1,061,151 passengers. Cologne-Bonn attributes much of the traffic rise to the increasing popularity of low-cost carriers. Five years after the first low-cost carrier took off at Cologne-Bonn, the airport claims it is now the largest low-cost airport on the European Continent.

The airport’s management has put much emphasis on the passenger business in recent years. “Our emphasis on low-cost traffic in recent years has enabled us to achieve stability in growth,” said Michael Garvens, the airport’s chief executive officer.

Cologne-Bonn Airport continues to expand and improve its terminal facilities. The interior of Lufthansa’s Business and Senator Lounges in Stern C will be refurbished this month and are scheduled for reopening in January 2008.

The shopping areas in both the airport’s terminals will also be improved. Terminal 1 will be expanded with a 1,100m² shopping area, while Terminal 2 will get a new food court.

By 2009 the airport expects to have expanded its space for retail, and food and beverage facilities to 10,000m² – three times greater than the space in 2002.

Schiphol forced to lower tariffs

Schiphol's fees for airlines will be cut following intervention by Dutch competition officials

The Netherlands Competition Authority (NMa) has decided that Schiphol Group must lower its landing and departure taxes as well as its passenger charges from the start of the airport’s next business year.

According to Dutch civil aviation law, Schiphol must take its financial performance in the period 2005-2006 into account when setting tariffs for this year. The NMa says the new tariff system that became effective yesterday (1 November 2007), does not include this calculation.

The NMa’s pronouncement means that Schiphol must charge around US$53 million (Euros 36.8 million) less to airlines than it had projected.

The competition watchdog began investigating Schiphol’s tariff structure following a complaint by KLM about the airport’s charges for transfer passengers and the procedure used by the Schiphol Group to stipulate its charges.

That complaint was rejected by the NMa as was an objection from the Schiphol Airline Operators Committee (SAOC) and the Board of Airline Representatives In the Netherlands (BARIN) about the tariff settlement procedure.

The enforced charge reduction is good news for airlines operating at Schiphol since they face a new environmental tax initiated by the Dutch government.

Stewart’s new owner announces Skybus launch

Stewart International Airport is now under the control of the Port Authority of New York and New Jersey

Transport operator National Express yesterday completed the sale of its lease of Stewart International Airport to the Port Authority of New York and New Jersey. The Port Authority marked its first day in control of the airport with the announcement that on 6 January Skybus Airlines will begin twice-daily flights from Stewart to Columbus, Ohio.

The airline also plans to launch a twice-daily service to Greensboro, North Carolina from 25 February.

Skybus will be the sixth major commercial airline at Stewart, which in the past year has attracted JetBlue Airways, AirTran Airways and Delta Connection.

Stewart can accommodate up to three million passengers annually, but is expected to handle more than 800,000 passengers this year, up from around 300,000 in 2006.

“We’re working with the other carriers to see if they’ll consider expanding some of their services,” says Diannae Ehler, Stewart’s new general manager. “We’re working with carriers we’re familiar with and other ones, like Skybus, that we don’t currently have a business relationship with.”

Pittsburgh hikes fees following US Airways cutbacks


Above: Pittsburgh plans to raise fees in January following US Airways cutbacks

Cutbacks by US Airways at Pittsburgh International have prompted airport officials to hike fees from January next year. Landing fees will jump by 33%, terminal fees will increase by 35.9%, and ramp fees will rise by 64.5%.

The Allegheny County Airport Authority says the US Airways cutbacks will cost the airport an estimated US$5 million in revenue next year. To help offset the losses, the authority will also close 27 gates at the ends of two of four concourses, saving about US$1 million. The board authorised the increases in landing, terminal and ramp fees when approving a US$87.4 million budget for 2008.

Southwest Airlines spokeswoman Whitney Eichinger says the airline is very concerned about the fee increases. The increase in fees is not expected to affect the airline’s plans for growth in Pittsburgh next year, she adds, but warns it could have some impact long term if fees continue to rise.
AirTran Airways and Delta Air Lines have also expressed concern about the fee increases, but like Southwest, neither expect them to have a big effect on their growth plans at Pittsburgh.

Beijing unveils T3 retail plans


Above: T3 will double the retail space available at Beijing Capital International Airport


When Beijing Capital International Airport opens its third terminal, T3, next February it will double retail space at the airport. The T3 air mall will cover 52,670m², accounting for around 5% of the total space within the new terminal.

It will include domestic retail areas in T3A, while international duty free shopping areas, various convenience stores and around 15,000m² of food and restaurant outlets will be in T3B.

BCIA officials say that the retail shopping area per one million annual passengers will be 1,115m², which is comparable to the airports in Hong Kong and Singapore.

Beijing Capital Airport Commercial & Trading Company holds franchise rights to all commercial activities at Beijing Airport and is looking for specialist branded shops to come into the new T3 retail space.

Earlier this year Beijing Capital International Airport pledged to lower retail prices at the airport to bring them in line with levels downtown by year-end. Customers will also get a seven-day return guarantee. The airport is seeking to improve its services ahead of the 2008 summer Olympics.

United drops plans to use Dewbridge jetways

United Airlines has decided to abandon a new type of high-tech jet bridge it has been trialling in Denver following an accident earlier this year, when part of a bridge collapsed onto an aircraft wing.

No one was injured in the incident, but United stopped using that part of the bridges while it and Canada-based Dewbridge Airport Systems, which developed the bridges, conducted investigations. The Chicago-based carrier had planned to deploy the jetways in other cities across its network if they proved successful at DIA.

The bridges connect to both the front and rear doors of a plane, allowing passengers to get on and off aircraft more quickly. United began using the bridges at Denver International Airport last year and eventually operated five there.

United spokeswoman Megan McCarthy says, “We want to be absolutely sure that any new technology meets the needs of our customers and our business.”

United is now removing the arms of the bridges that connect to the rear of aircraft but will continue using the main sections that link to the front doors.

Dewbridge Airport Systems says it remains committed to the technology and is disappointed at United’s decision.

Changi opens Terminal 3 for sneak preview


Above: Singapore's new Terminal 3 will be open to the general public for tours from 12 November

Members of the public will be able to tour Changi Airport's new Terminal 3 (T3) even before it opens. The Civil Aviation Authority of Singapore (CAAS) has announced it is organising an Open House, from 12 November to 9 December 2007, during which visitors can tour the terminal.

A visitor gallery will feature various display panels showing T3's highlights, and a range of T3 souvenirs, such as limited edition T3 Swatch watches, will be on sale.

Lim Kim Choon, CAAS director-general and chief executive officer, says, “We hope to give members of the public an opportunity to get a first-hand view of the landmark terminal before it opens for flight operations. We welcome everyone to join in the excitement of seeing Terminal 3 come into being and becoming a significant milestone in Singapore's civil aviation development.”

The Open House will be open from 10am to 5pm on weekdays and 9am to 6pm on Saturdays and Sundays. A T3 Open House guide brochure (available in English, Chinese, Malay and Tamil) will be available to assist visitors in exploring the new terminal on their own.

While visits to T3’s public areas will be free, CAAS will charge a small fee to those visitors who choose to tour the restricted areas.

Bristol begins security update

Bristol Airport in south-west England has begun work on a US$15 million upgrade of its security search area, which should increase passenger capacity at peak times.

The work has been prompted by the introduction of additional security measures at UK airports.

Piarco shuts twice in a week

Piarco International Airport in Trinidad and Tobago was shut down for the second time within a week yesterday when a blackout forced the authorities to close the runway. A broken electrical cable caused the lights to fail, grounding several local flights. International flights were re-directed to Crown Point International Airport in Tobago. A full investigation will be launched into the power outage. Representatives say the cables are being repaired but could not say when the runway would be re-opened.

Work begins on new Panama City-Bay County airport

Officials broke ground yesterday (Thursday) on the new, US$330 million Panama City-Bay County International Airport in Florida. The 1,600 hectare airport is scheduled to open in 2010.

Construction starts on Kashi’s terminal

Expansion of Kashi airport will raiuse capacity to 1.2 million passengers per year.

Construction of the new terminal at Kashi airport in southern Xinjiang province in China has begun. The 17,000m² terminal marks the latest stage in the US$22.67 million (Yuan 170 million) redevelopment of the airport, where a 930m² air traffic control tower and 2,000m² airport authority administration building are already complete. The whole project is due to be finished by the end of 2008.

Xinjiang Airport Group said that the redeveloped airport would be able to handle 1.2 million passengers a year, with peak passenger flows of up to 911 people per hour.

The airport was last upgraded in 1999 when the runway was extended to accept all commercial airliners – though not the new Airbus A380. The airport’s existing terminal building is 4,856m².

Kashi is a city with strategic importance in southern Xinjiang, China’s gateway to central, west and southern Asia. Kashi Airport is located 10km from the centre of Kashi City.

Air Malta switches Heathrow handling

Air Malta has announced that Alitalia Servizi has taken over the handling of the airline’s flights at London’s Heathrow Airport. The contract, which commenced yesterday (Thursday), is expected to improve ground services to Air Malta’s customers.

Air Malta operates two daily flights into and out of London Heathrow. It will continue to operate from Terminal 4, but check-in desks will now be moved to Zone A. Air Malta club class customers and Flypass members entitled to use the VIP Holideck lounge may continue to use the lounge facilities. Air Malta’s ticket sales desk will still operate from Zone D at the airport.

Air Malta officials said the changes form part of the airline’s programme to increase efficiency, reduce costs and focus more on its customers.

Silverjet to use Dubai as business only hub?

Business-class only airline Silverjet is considering using Dubai as a hub for future expansion

Luton Airport-based airline Silverjet is considering making Dubai a hub for its future expansion. The business-class-only carrier is due to launch its Luton to Dubai route on 18 November, and the airline’s director of sales, marketing and international development, Katherine Gershon, said that it is eyeing expansion to the west coast of the USA, South Africa and the Far East from the emirate.

Gershon said Silverjet will add two long-range aircraft to its three-strong fleet next June. This will open up destinations across the world for the UK-based airline, including San Francisco from Luton and Shanghai, Singapore and Hong Kong from Dubai.

Gershon added, “If Dubai really takes off, as we expect it to, then we can use this as a hub to launch to other destinations. Nobody has taken this business-class-only model anywhere else but transatlantic before. We’re looking to take it south, east, west and possibly north of Dubai.”

There are currently around three and a half million passengers travelling the London to Dubai route each year. To make a profit, Gershon said Silverjet needs to capture around 25,000 of those travellers.

Weak Dollar Helps British Airways Cut Costs

Reuters-British Airways reported record first-half profit on Friday, up 26 percent due to cost cutting, but its shares fell after it cut its full-year revenue guidance due to the weak US dollar.

Profit before tax was GBP593 million pounds (USD$1.23 billion) in the six months to September 30, GBP122 million more than a year earlier after it slashed GBP150 million off costs.

"Our cost performance was excellent, helped by the weak US dollar," said Chief Executive Willie Walsh.

The market focused not on the way the weak dollar would help cut costs, but on the way it would reduce revenues after BA cut its view of full-year revenue growth to 3 to 3.5 percent from earlier guidance of 4 percent.

"What we see is premium bookings remaining strong," Walsh told reporters. "The North Atlantic non-premium market is still soft but other non-premium markets are more encouraging."

Walsh said BA remained committed to the consortium looking at buying Spanish airline Iberia.

"We're still working on finalizing the financing on Iberia," added Finance Director Keith Williams.

The airline said it was on track with its goal of keeping operating margins at 10 percent or more, having hit 12.5 percent in the first half.

It predicted costs excluding fuel were now expected to be GBP100 million lower than previously forecast in the full year due to the weak dollar.

But fuel costs are expected to be up by GBP100 million on last year.

"Fuel costs remain a major challenge and our fuel bill for the year is expected to top GBP2 billion for the first time," said Walsh.

"The fuel surcharge is constantly under review, but there's no plans to adjust it at this moment," he added.

Walsh brushed off media reports that BA's plans to start flights to the United States from European cities could be threatened by opposition from its pilots or by plans to cut flight capacity at New York's JFK airport.

World Tourism Day Award

As part of World Tourism Day, Four Seasons Resort Sharm El Sheikh, Egypt has been recognised by the Ministry of Tourism for excellence in promoting tourism in Egypt. The award was presented by the Minister of Tourism, His Excellency Minister Zoheir Garranah, to Resort Manager, Charlie Parker. “We are very proud to have been recognised by the Ministry for our contribution to tourism in Egypt,” says Charlie Parker. “We think it reflects our commitment to both Egypt and the Middle East as a whole, and we intend to continue our efforts in making Sharm El Sheikh one of the most desirable destinations in the world.”

More industry leaders call for government liberalisation of aviation

The topic of liberalisation – and the need to effect more of it – stayed front and centre during the second panel discussion of the CAPA's Outlook Summit. Stakeholders from all parts of the industry reiterated the need for the region's governments to remove the shackles holding back the industry from its potential – and even natural – level of growth.

Stanley Hui, CEO of Airport Authority Hong Kong and former chief of Dragonair, noted that more generously granted access to rights always stimulates more traffic, which in turn is always good for the economies on both ends of a new route. Noting that deregulation is something that "benefits airlines, passengers and the community at large", Mr Hui illustrated how Hong Kong's recently enlarged air service agreement with Mainland China has seen traffic between the two double in a short period of time.

IATA's Regional Vice-President for Asia Pacific and former Silk Air CEO, Mike Barclay, also spoke on the benefits of a more open aviation system. Saying that the idea that flag carriers instinctively oppose liberalisation is a misconception, Mr Barclay allowed that deregulation would create losers as well as winners, but that the overall industry would be healthier because of it.

Pointedly remarking that flag carriers generate from new route opportunities just as much as the LCC market participants, Mr Barclay furthermore stated that ASEAN's gradual moves towards a more open air service environment were "a step in the right direction, but fall well short of what's needed."

Also addressing the assembled aviation leaders was Waleed Youssef, Head of Strategy and Development at Abu Dhabi Airports Company, who discussed the pro-liberalisation views that currently mark a growing number of the Middle East states and the need for that mindset to spread throughout the region.

Aviation Outlook Summit 2008 is the fourth meeting of the Centre's annual review of the Asia Pacific and Middle East airline industry and its future prospects. This year's gathering is focused on the need for Asian industry participants to play a leadership role in the events that continue to shape the global aviation sector, especially as the region begins to generate the largest share of world traffic.

Aviation leaders from all segments of the industry have assembled in Singapore to discuss and debate how the regional sector can proactively assert itself in such vital fields as the environment, liberalisation and the necessary evolution of the aviation business model, for both full-service and low cost airlines.

World airports executives to gather at Buenos Aires conference

Over 450 executives from the world’s airports begin to gather in Buenos Aires this weekend ahead of the Airports Council International world annual assembly, 5 – 7 November. This year, the world assembly is being held in conjunction with the ACI Latin America and Caribbean annual regional conference. The conference is being hosted by Argentinean airport operator Aeropuertos Argentina 2000. An exhibition that runs alongside the conference showcases airport technologies. Airport CEOs, board members and senior managers will join other leaders from the aviation industry to discuss issues of importance for the industry.

This year, the focus is on leadership and the importance of good management for running an efficient airport, with discussions on effective leadership, sustainable growth and the environment, the state of the industry and a focus on the future of aviation in the Latin American region. ACI Director General, Robert J Aaronson, says that the annual event is an opportunity for airport executives to meet and take stock of the changes occurring in the industry, “With globalisation, international organisations take on a greater role and importance – particularly in an industry like commercial aviation whose many parts must work effectively in concert to serve air transport consumers.”

As hosts of this year’s event, AA2000 is able to showcase Argentina to the global airport community. President and Chief Executive Officer, Ernesto Gutiérrez, says, “We are proud to have this opportunity to bring so many of our colleagues from airports around the world to our home. We will provide a memorable experience for them all and it is an occasion to talk about the importance of air transport to our region.”

Aaronson commented, “Leadership is vital in our industry and that is why this theme is so important. One of ACI’s main services to members is the training that we provide. This occurs at several levels – executive leadership, middle management, practical operations skills and also a special programme aimed at airports in developing nations.”

“We are thrilled to be holding this year’s conference in Buenos Aires and thank AA2000 for hosting us. Buenos Aires is a vibrant city, which reflects the dynamic Latin American aviation sector. We are seeing steady growth in this region and are projecting that passenger numbers will more than double in the next 20 years. From 270 million passengers currently to 610 million in 2025, this will present some real growth and capacity challenges, but also some exciting opportunities for Latin American aviation.”

“Of course the region always must keep safety and security as the top priorities in the aviation industry and with growth comes responsibility to be an environmentally sustainable industry.”

Delegates will have the opportunity to hear from, and interact with, Roberto Kobeh Gonzalez, President of the ICAO Council and Jaan Albrecht, CEO of Star Alliance, who will give keynote addresses. Other speakers include: Iñigo Meirás, CEO Ferrovial Aeropuertos and BAA Vice-Chairman; Javier Marin, Director of Spanish Airports, AENA; Héctor Navarrete, Director Regional Airports, ASUR; Bijan Vasigh, Ph.D., Professor, College of Business, Embry Riddle Aeronautical University; Benjamin de Costa, Aviation General Manager, Hartsfield-Jackson Atlanta International Airport; Nancy Graham, Director of the Air Navigation Bureau, ICAO; Catherine Mayer, Vice President, Airport Services, SITA; Miguel Southwell, Director Business Development, Miami Airport; Alexander ter Kuile, Secretary General, CANSO; José Maria Palencia Saucedo, CEO, Aldeasa; Angela Gittens, Vice President of Airport Business Services, HNTB.

SIA's strong operating results lift net profit

An operating profit of $982 million for the first half of financial year 2007-08 was reported by the Singapore Airlines Group; an increase of $449 million (+84.1%) from the corresponding period last year. This was underpinned by strong performance from the Parent Airline Company.

Group revenue rose to $7,589 million, up $560 million (+8.0%) over the same period last year, on the back of strong passenger demand.

Group expenditure also increased, but was contained below revenue growth; up $111 million (+1.7%) to $6,607 million. Fuel cost remained high in US Dollars, and accounted for 36.5% of the Group expenditure.

The Group's net profit attributable to equity holders of $932 million was a $64 million improvement (+7.3%) over the first half of the previous year. The results for last year included an exceptional gain of $223 million from the sale of the SIA Building in Singapore. Excluding that exceptional gain, profit attributable to equity holders this year was $287 million (+44.5%) higher.

The Parent Airline Company posted an operating profit of $781 million (+112.2%), more than double the same period last year. The Airline contributed 79.6% (+10.6% points) to the Group's operating profit. The operating results of the three major subsidiary companies are as follows:

Singapore Airport Terminal Services (SATS) Group: Profit of $94 million (-3.8%) SIA Engineering Company (SIAEC): Profit of $63 million (-6.6%) Singapore Airlines Cargo (SIA Cargo): Profit of $19 million (Loss of $29 million in 2006-07)

Second Quarter 2007-08

The Group had a strong second quarter, posting a net profit attributable to equity holders of $508 million, up $215 million (+73.2%) from the second quarter of the previous year.

Group operating profit doubled to $519 million; a year-on-year increase of $259 million (+99.9%), led by the Parent Airline Company, turning in a strong performance in the second quarter.

Group revenue increased $359 million (+9.9%) year-on-year to $3,967 million. Passenger demand from both business and leisure markets remained buoyant in the second quarter, pushing passenger load factor to 81.6%.

Dividends

The Company is declaring an interim dividend of 20 cents per share (tax exempt, one-tier), amounting to $237 million, for the half-year ended 30 September 2007 (15 cents interim dividend in the previous year). The interim dividend will be paid on 30 November 2007 to members on the Register as at 16 November 2007.

First half 2007-08 operating performance: Strong passenger traffic

Singapore Airlines carried 9.4 million passengers (+5.0%) in the first six months of the financial year. Revenue passenger kilometres grew 2.6% despite a capacity reduction of 1.0% in available seat kilometres. As a result, passenger load factor improved 2.8 percentage points to 80.3%.

Passenger breakeven load factor was 2.8 percentage points lower, at 70.1%, because yield grew at a higher rate (+9.3%) than unit cost (+5.1%).

Fleet and Route development

During the first half of the financial year, Singapore Airlines took delivery of one Boeing 777-300ER, leased in one Boeing 747-400, and de-commissioned four Boeing 747-400s. As at 30 September 2007, the operating fleet comprised 92 passenger aircraft - 19 B747-400s, 68 B777s and five A340-500s, with an average age of six years and six months.

Outlook

Singapore Airlines took delivery of the first Airbus A380 on 15 October 2007 and inaugurated commercial service with a flight in aid of charity on 25 October 2007 from Singapore to Sydney and return. The new cabins and seats on the aircraft have been well received by customers and industry observers.

The business landscape however remains challenging. While advanced bookings are holding up, slowing economic growth sparked by tight credit markets and increasing volatility in financial markets cast a cloud of uncertainty over the strong revenue environment.

On the cost side, the price of fuel remains a significant variable for the second half of the financial year.

November 02, 2007

China Airlines and China Eastern Airlines begin a double mileage promotion

China Airlines and China Eastern Airlines will cooperate on a joint double mileage promotion from November 1, 2007 to January 31, 2008 as the two carriers announced. The China Airlines double mileage promotion covers routes operated by China Airlines and its subsidiary, Mandarin Airlines, to and from Taipei, Kaohsiung and Taichung, and connecting to China Eastern flights from Hong Kong to 14 cities in China. The 14 eligible destinations in China are Shanghai, Fuzhou, Wuxi, Ningbo, Nanjing, Hangzhou, Qingdao, Jinan, Kunming, Xi’an, Wenzhou, Nanchang, Hefei and Taiyuan.

During the promotion period, members of China Airlines Dynasty Frequent Flyer Program can accumulate double mileage in their accounts when traveling on those routes.

Meanwhile, members of China Eastern Airlines’ Eastern Miles program who fly with China Airlines to or from Taipei and Kaohsiung to Hong Kong, and connecting to the designated 14 cities, can choose to accumulate double mileage to their accounts and enjoy the same benefits.

In 2004, the two carriers started to cooperate on inter-line fares and through check-in services. The cooperation between the airlines includes flights to and from Taiwan via Hong Kong, and connecting to China Eastern Airlines flights to more than 80 destinations in China.

November 01, 2007

EMIRATES’ EXECUTIVE VICE CHAIRMAN COMPLETES 54 YEARS IN AVIATION

[left] Maurice Flanagan, Executive Vice Chairman, Emirates Airline and Group, was honoured with the Centre for Asia Pacific Aviation (CAPA) Legends Award yesterday evening in Singapore. Mr Flanagan received his award from Peter Harbison, Executive Chairman, CAPA.

DUBAI, UAE, 1st November 2007 – Maurice Flanagan CBE, Executive Vice Chairman, Emirates Airline and Group, has been honoured with the Centre for Asia Pacific Aviation’s (CAPA) Legends Award, one of the most highly-esteemed awards in the aviation industry.

Mr Flanagan received the award in Singapore yesterday at the CAPA Aviation Awards for Excellence for 2007, organised as part of CAPA’s 4th Annual Asia Pacific and Middle East Aviation Outlook Summit.

According to CAPA, the Legends Award honours individuals who have demonstrated “a lifetime of strategic leadership, innovation and influence in the aviation industry”. The recipient is chosen by an aviation advisory board, which assesses the recipient based on an individual’s achievements in the aviation industry over the course of the person’s career. Past recipients of the CAPA Legends Award include Ray Webster, former Chief Executive Officer of easyJet and Dr Cheong Choong Kong, former Deputy Chairman and CEO of Singapore Airlines.

Peter Harbison, Executive Chairman, CAPA, said, “Under the stewardship of Mr Flanagan, Emirates has gone from two aircraft serving three destinations in India and Pakistan, to a fleet of more than 100 aircraft and the only airline operating non-stop to all continents on the globe from a single hub. Emirates’ ascendant influence on global aviation will change the structure of the industry in years to come, and this is no doubt due to the solid foundation that Mr Flanagan and his team have laid since Emirates’ start-up. We warmly congratulate Mr Flanagan on his award and look forward to seeing Emirates grow from strength to strength in the coming years.”

Mr Flanagan said, “CAPA’s reputation in the aviation industry is unparalleled and it is indeed an honour to be inducted into its coveted Hall of Fame. I would like to thank Peter Harbison and his team for conferring this honour upon me, as well as all my colleagues for their unstinting support. I’m extremely proud of the Emirates team, now more than 30,000 strong and ever growing, for the dedication and professionalism that have ensured the Emirates Group is at the top in the aviation world, under the exceptional leadership of His Highness Sheikh Ahmed bin Saeed Al-Maktoum.”

Maurice Flanagan CBE, BA, Hon.FRAeS, FRAeS, FCIT, first entered the aviation industry in 1953, when he joined BOAC, the forerunner of British Airways, as a graduate trainee. In 1978, he joined the Emirates Group as the Director and General Manager of Dnata, Emirates’ sister company. Mr Flanagan then became Emirates’ Managing Director in 1985 when the airline began operations and was appointed Group Managing Director of the Emirates Group in 1990. He became Emirates’ Vice Chairman and Group President in July 2003 and was appointed Executive Vice Chairman for Emirates Airline and Emirates Group in 2006.

AIRPORT NEWS

Korea considers second Busan airport

Right: Dramatic growth in traffic at Gimhae International Airport could precipitate the development of a second airport for South Korea's
second city of Busan



South Korean president Roh Moo-hyun says his government is considering constructing a new international airport near Busan in the southeast of the country to cope with rapidly growing demand for air passenger and cargo transportation.

The results of a state-commissioned feasibility study on the new airport in the Busan area are due next month. “As soon as the feasibility study is finished next month, the government will swiftly reach the final conclusion on the construction of a new airport.”

The president revealed the study at a ceremony marking the completion of a new international passenger terminal at Gimhae International Airport located at the western end of Busan, Korea’s second largest city.

Gimhae’s new international terminal, completed after five years of construction on a lot covering about 50,000m², can handle 4.63 million passengers annually. Gimhae currently handles mainly domestic flights around the country and also flights to many Asian destinations. It handles over nine million passengers per year.

“By 2020, demand for air travel in the broad Busan area will nearly double from its current level. Considering the lengthy preparatory period, the government will now have to decide whether to build a new international airport in the area,” says the president.

Worldwide Flight Services breaks into China market

Beijing Capital International Airport has selected Worldwide Flight Services (WFS), one of the world’s largest ground handling specialists, to provide airport service ambassadors for the millions of passengers travelling through the airport’s Terminal 1 and Terminal 2. This contract represents the first venture for Paris-based WFS in Mainland China.

WFS, along with its local partner GRH, is recruiting and training a team of over 60 ambassadors to provide passenger assistance, including information on all services available in the terminal, guidance to all facilities and personal assistance to those with special needs.

Barry Nassberg, chief operating officer of WFS and executive vice-president, Asia, says, “This new concept ensures all travellers can quickly and easily find assistance and guidance in the terminals, no matter which airline they are flying on. GRH will recruit and provide the workforce, while WFS will manage the project, the training and the service development.”

The service is modelled on the Airport Concierge service that WFS introduced in Hong Kong six years ago. In the lead up to the Olympics, Beijing Airport is completely revamping all of its service features. Nassberg adds, “We have maintained a representative office in Beijing for the past five years and are pleased to now be in a position to bring the first of our range of services to China’s capital city. We look forward to a growing presence in the months to come.”

Air India looks for exclusive terminals

Air India’s chief executive, V. Thulasidas, says the company is in talks with airport developers at Delhi, Mumbai and Hyderabad to secure exclusive terminals at the country’s major metro airports. Talks are also expected soon with developers at Bangalore. Thulasidas does not rule out acquiring equity in these airports in order to get such rights, but is not prepared to reveal how much Air India is looking to invest.

Manchester opens first phase of redevelopment

Manchester Airport in northwest England has opened the first phase of its US$70 million (£35 million) redevelopment, a US$20 million (£10 million) mezzanine food and bar area in Terminal 1.

The new dining experience, which is available for use by all passengers and visitors to the airport, includes a self-service food court, including Lancashire Hotpot, Bar MCR, and the Giraffe Restaurant for a sit-down meal. The new design provides customers in the Giraffe Restaurant with a panoramic view of the runway.

Commercial director of retail, Andrew Harrison, says, “It’s a very important part of our redevelopment and the future of the airport. These are great restaurants and bars with amazing views over the airfield, and we are very pleased to be opening to passengers.”

The full redevelopment project is due for completion in 2009.

Edinburgh bans obstructive cabbies

Dozens of taxi drivers have been banned from Edinburgh Airport for blocking an exit road for buses and coaches. A total of 62 taxis have been handed a three-month ban after breaking strict rules on waiting for fares.

The rank, which opened in January last year, is one of the city’s busiest, but has only 22 spaces, resulting in a number of cabbies queuing on the road in front of the terminal building, causing congestion and blocking the path of buses and emergency vehicles. Airport officials say they have no choice but to ban the drivers.

To enforce the ban, airport officials are using an electronic system that can recognise each taxi’s number plate and only permits registered vehicles to drive in front of the terminal.

An Edinburgh Airport spokeswoman says that most taxi drivers follow the operating protocols, but the airport intends to reduce the number of black cab operators to a single company who will control operation of the rank. Only taxis from that company will be permitted to pick up passengers from the public rank.

Airline bans A380 mile-high club

BBC News

Singapore Airlines A380
The plane has 12 private first class suites
Singapore Airlines has taken the unusual step of publicly asking passengers on its new Airbus A380 plane not to engage in any sexual activities.

The potential problem has arisen because the first class area of its giant superjumbo contains 12 private suites complete with double beds.

Singapore, which is the first airline to start flying the A380, said the suites were not sound-proofed.

It said it did not want anyone to offend other travellers or crew.

Singapore added that while the suites were private, they were also not completely sealed.

'Observing standards'

Bed in A380 first class lounge
The suites offer privacy, but not that much privacy

"All we ask of customers, wherever they are on our aircraft, is to observe standards that don't cause offence to other customers and crew," the airline said in a statement.

"Nothing different applies for our Singapore Airlines Suites customers."

Singapore Airlines took delivery of its first A380 earlier this month, with the first services between Singapore and Sydney starting on 25 October.

It is now set to take delivery of a further five A380s in 2008, out of its order of 19.

AirAsia To Exercise 25 A320 Options

Reuters-Malaysian budget airline AirAsia plans to exercise 25 out of its 50 options to buy Airbus A320s in anticipation that more regional routes will be opened to competition in 2009, its chief executive said on Thursday.

AirAsia also intends to raise its number of options for the single-aisle A320 back to 50 by acquiring another 25 options, its CEO Tony Fernandes said.

Speaking on the sidelines of an aviation conference in Singapore, Fernandes said he was confident the 10 member Association of Southeast Asian Nations (ASEAN) will meet its deadline to reach an open skies agreement by December 2008.

"ASEAN has seen the benefits of liberalization," Fernandes told reporters. "National airlines have realized they can't hold onto protection forever," he added.

Citing Malaysia as an example, he said national carrier Malaysia Airlines had become profitable despite competition from AirAsia. "When MAS was a protected airline, they lost lots of money," he said.

Transport ministers and officials from ASEAN are meeting in Singapore this week to discuss several issues including an open skies agreement.

The agreement envisages liberalizing air travel between ASEAN capitals by the end of 2008, and opening the entire region to competition by 2015.

Singapore and Malaysia will also discuss a Malaysian proposal to allow AirAsia and Singapore's Tiger Airways, partly owned by Singapore Airlines, to each operate two flights between Kuala Lumpur and Singapore from as early as December 2007.

AirAsia, Asia's largest budget carrier, introduced its low-fare, no-frills concept in December 2001, and has since embarked on an aggressive expansion.

It currently operates over 60 aircraft, and said in January it had agreed to buy 50 A320 planes worth over USD$3 billion.

Air China To Sell Up To 400 Million Shares

Reuters-Air China plans to sell up to 400 million additional shares on domestic markets to help bankroll the carrier's purchase of 30 Boeing and 24 Airbus aircraft.

The airline said on Wednesday it had decided to sell the yuan-denominated A shares, which are not available to most foreign investors, amounting to 5.1 percent of its existing A-share capital, to be listed in Shanghai.

The firm, which is also listed in Hong Kong, did not say how much it hoped to raise. But it added in a statement that about CNY1.5 billion yuan (USD$201 million) of the share sale proceeds would go towards replenishing working capital.

Air China has previously disclosed details of the Airbus and Boeing plane purchases, which include 787s, 737s, and A320s.

The share offering awaits government and shareholder approval.

Singapore Air Brings Lovers Down To Earth

Singapore Airlines, the first operator of the new Airbus A380, has dashed the hopes of sexual thrill-seekers planning to engage in amorous activity aboard the world's biggest jumbo jet.

The carrier said it would ask passengers on the A380 to refrain from sex while ensconced in one of its 12 first-class suites, which boast the world's first airborne double beds.

"All we ask of customers, wherever they are on our aircraft, is to observe standards that don't cause offense to other customers and crew," the company said in a statement.

"Nothing different applies for our Singapore Airlines Suites customers."

While private, the double cabins are neither sound proofed nor completely sealed.

Singapore Airlines, the world's second-largest airline by market value, started commercial flights of the double-decker A380 last week with a Singapore-Sydney service.

"So they'll sell you a double bed, and give you privacy and endless champagne and then say you can't do what comes naturally?" Tony Elwood, who traveled with wife Julie in a suite aboard the inaugural flight, told the Times of London.

"They seem to have done everything they can to make it romantic, short of bringing round oysters," Julie said. "I'd say they shouldn't really complain, should they?"

October 31, 2007

All is not lost for Iraq tourism

By Kadum Wailli
Bombings, conflicts and deaths are not the only ones making headlines out of war-torn Iraq. It turns out that efforts are being made to revive the country’s once flourishing tourism industry.

BAGHDAD, Iraq (eTN) – European and Arabs companies have submitted proposals to build an airport on the road between Najaf and Karbala, which are the holy cities located south of the Iraqi capital of Baghdad.

Recent reports indicate that nine Arab and foreign companies made offers to compete for the building of an airport worth of US$3 billion between the two most important holy cities of Najaf and Karbala, 100 kilometers south of Baghdad.

"Nine companies from Kuwait, Italy, France, Turkey and Belgium made offers through Iraqi companies according to the investment law for the establishment of the new international airport in Karbala, costing US$3 billion,” said the chairman of the Reconstruction Committee in the city, Mr. Falah Al-Hasnanwi. "All offers will be studied by Iraqi experts, and it is expected to proceed next year."

Al-Hasnanwi added: "The airport will be implemented on an area of 220 acres .Tests were conducted in the region and received OK according to the international specifications.”

The construction is scheduled to take about three years to complete.

Kerbala and Najaf cities are holy cities that bring ten of thousands of pilgrims from Iran , Europe and Gulf area each year.

In another development, the official spokesman of Najaf governorate announced the signing of understanding memoranda between Najaf governorate and the US-based commercial manufacturer Boeing.

"During the visit of the delegation of the American Boeing Company to Najaf International Airport last Thursday, and meeting with the governor of Najaf, Ashraf gAsaad, and chairman of the committee implementing the Airport of Imam Ali, Abdul Hussein Abtan, there were discussions about ways of providing technical and informational by Boeing,” Ahmed Abdul Hussein Deibel said. “In addition to exchanging experiences and holding training courses for the working cadres in this area and the possibility of making a partnership contract to operate the airport, when is achieved, and provide it with airplanes."

He added, "Boeing promised to make frequent visits and sign understanding memoranda between the two sides."

The Boeing delegation visited the site of Imam Ali Airport and briefed on the work carried out at the airport of internal roads, the helicopters airstrip, aircraft parking plaza and the rest of the work executed.

Meanwhile, Abu Dhabi-based Rotana Hotels said on Tuesday it would develop a $55 million five-star property in Erbil in Iraq’s Kurdish region, which has largely been spared the violence affecting the rest of the country.

Rotana, which has 25 hotels across the Middle East, will compete for a growing hospitality business with the Erbil International Hotel; the city's only other five-star property, where a standard twin room costs around $300 a night.

"This is part of our strategic aim to have a property located in every key city in the Middle East," Rotana president Selim el-Zyr said in a statement.

The semi-autonomous Kurdish Regional Government is trying to encourage investors to develop Erbil's hotel infrastructure and turn the city into an entry point to Iraq for foreign businesses.

The Ministry of Tourism last month said three or four times the current numbers of hotels were needed.

The city's international airport handled about 170,000 passengers in 2006 and the regional government is building a new airport to handle 1.5 million, according to the London-based Kurdistan Development Corporation.

Austrian Airlines became the first European carrier to resume scheduled flights to Iraq last year when it began twice-weekly services to Erbil from Vienna.

Rotana's 205 room Erbil property, scheduled to open in 2009, is owned by Lebanese holding company Malia although potential investors are “still welcome,” according to president Jacques Sarraf.

*With input from local media.

Cathay Pacific To Wait On Next-Generation Planes

Reuters-Cathay Pacific Airways will wait at least another two years before ordering any of the new wide-body planes offered by Boeing and Airbus, its chief executive said, despite the promise of cutting fuel costs and predictions of a surge in Asian air travel.

Hong Kong's flagship airline, which is the third-biggest in Asia, is in no hurry to make a decision and is happy to avoid the hassles experienced by rival Asian carriers of being the first to fly such revolutionary aircraft.

"If you are one of the early customers, you can be almost certain that it's going to go wrong," Tony Tyler, Cathay's chief executive said. Airbus's A380 superjumbo, the largest commercial plane in the skies, entered service only last week after two years' delay, while Boeing just announced a six month delay in producing its new 787 Dreamliner.

Given the inevitable teething problems, Cathay is shying away from billion dollar commitments for new planes that won't be delivered for five years or more.

"I don't think we are comfortable ordering that far ahead on a new aircraft type," said Tyler, who took over as Cathay CEO in July. "I don't think we'll be making a decision on any of these aircraft for at least two years."

Cathay has a mix of large Airbus and Boeing jets in its 110-strong wide-body fleet, and is taking delivery of another 23 Boeing 777s over the next four years or so to cope with expected growth in traffic to Hong Kong and China.

Airbus's A380, which made its maiden commercial flight for Singapore Airlines last week, is not an option for Cathay right now.

"In our current fleet and network, it doesn't make as much sense as getting more 777-300ERs," said Tyler, referring to Boeing's extended range mini-jumbo, which seats about 385 people, fewer than the 500 or more that the double-decker A380 can accommodate.

"All our financial modeling shows that we are better off offering more frequency with a very efficient aircraft like the 777 than simply adding more capacity to an existing frequency, which is what we would be doing if we introduced the A380," he said.

Cathay is also wary of being an early customer on an unproven commercial plane. "We want to see that aircraft (the A380) in operation for a bit first," said Tyler. "It's no fun being an early customer."

Singapore Airlines, which is Asia's largest carrier, had to wait longer than expected for its first A380 after wiring problems pushed the schedule back.

In the last month, Boeing has been telling its first 787 customers -- led by Japan's All Nippon Airways -- that they will have to wait at least six months more than planned as it wrestles with out-of-sequence work and a shortage of bolts.

Despite his caution over the A380, Tyler said that if Airbus stretched the plane to fit more passengers, or increased its take-off weight to extend its range, Cathay might buy.

"Either of those options would make it more economic and more competitive from our point of view," said Tyler, who wants a bigger plane which can carry more cargo and is more suited to very long trans-Pacific routes.

Airbus has mentioned a stretched version of the A380, but there are no plans to build it yet.

Tyler said Cathay was also interested in Boeing's 787 and Airbus's A350 XWB -- the new generation of mid-sized, long range, carbon-composite planes -- but gave no estimate of when a decision would be reached.

"That promises to be quite an interesting bit of work, to look at both those aircraft," he said. Cathay would be interested in the stretched 787-10 version of the Boeing plane, Tyler said, which Boeing has been considering but has not yet committed to build.

Cathay is keeping its eye on the market for new planes as air travel through its Hong Kong hub -- from which it serves mainland China destinations -- is set to grow dramatically over the next few years, spurred by the Beijing Olympics next summer.

Although Cathay's capacity is set to grow only about 3 percent this year, new planes in its fleet will help produce a year-on-year increase of about 12 percent next year, said Tyler.

"All carriers from around the world are increasing their frequency into the mainland (of China)," said Tyler. "Even in the face of increased direct competition, I'm still very confident of our ability to carry our fair share -- or more than our fair share -- of traffic."

AIRPORT NEWS

Iran switches terminals for international flights

From Sunday (November 4) all foreign airlines working in Iran will operate from the new Imam Khomeini International Airport (IKIA) located 30km (20 miles) south of Tehran, instead of the severely-overloaded city-centre Mehrabad airport. Air France, Austrian Airlines, British Midland and Lufthansa have all confirmed that their flights will utilise IKIA, which has been ready for international flights since 2004 but has been hardly used thanks to a series of ‘issues.’

When IKIA – named after the Islamic republic’s revolutionary leader – first opened three years ago, the Revolutionary Guard moved to shut it down. They objected to the involvement of a Turkish-led consortium in the project which, they said, had business dealings with Israel. The Revolutionary Guard claimed the link posed a threat to national security. Later, the airport was re-opened but suffered a number of subsequent closures over various issues.
However, the final switch of major airlines to IKIA seems likely to go ahead. Following the move, the long-established and somewhat ‘tired’ Mehrabad airport – located within the Iranian capital limits – will be almost exclusively used for domestic flights.

L&T wins Indian contract

Engineering and Construction company Larsen & Toubro (L&T) has been given the master contract for the redevelopment of Mumbai airport, the largest airport hub in India.
The contract is for the reconstruction of the domestic and international airport building as well as the air-side redevelopment of the Chatrapati Shivaji International Airport (CSIA). This includes the runway and a new integrated cargo complex among others. The project will redevelop the airport section by section, while operations continue. The rebuilding is reportedly to be among the most complex infrastructure projects being undertaken around the world.
L&T is expected to carry out most of the work on its own, except for some technical contracts like baggage handling, electrical and certain mechanical work which may be sub-contracted to domain experts.
The master plan, yet to be approved by the government, has been designed to expand and upgrade the infrastructure anticipating 40 million passengers per year. International and domestic terminals will be merged into one terminal building at the current international building and the current domestic terminal will be converted to a dedicated cargo terminal.

100 not out for Edinburgh

Edinburgh Airport has announced that, for the first time, the number of destinations it serves has reached the century mark. Over the past ten months, the addition of 29 new routes has helped the airport reach this total.
This summer, the airport became Scotland’s busiest, overtaking Glasgow, and with 8.9 million passengers each year it is one of the fastest growing hubs. This figure is double the number of passengers who used the airport ten years ago.
David Johnston, managing director of the airport, says, “These links are hugely important for our leisure passengers who tell us they want to be able to fly direct from their local airport, as well as for incoming visitors and business travellers. We will continue to grow, investing in new facilities to meet passenger demand. Next year, we plan to spend £42 million on terminal development, new aircraft stands and on airfield facilities.”

Residents oppose Siena expansion

Aeroporto di Siena SpA is planning to transform the small private airport of Ampugnano, just outside Siena, into an international airport. Galaxy, the investment company that has won the contract to become the airport’s major shareholder, is proposing to extend the runway and to increase passengers from 13,000 a year to 220,000 in 2012, and 490,000 in 2020.
Valerio Bellamoli, the chief operating officer, said that as the airport is intended for tourists, and Galaxy is conscious of preserving the beauty of the surrounding countryside. He said the airport will be small, and he pointed out that Pisa, the main airport used currently for Siena, has three million passengers annually.
But many locals are doubtful and an anti-airport committee has been established, with villages around Siena full of placards protesting against the plan. Inhabitants fear the unspoilt countryside will lay below the roar of Boeing 737s. The committee claims that, to be financially viable, the airport would be so big that it would have an impact similar to that of a vast industrial area. It says an improved rail link with Pisa is a better alternative.

Paxport launches sales platform for tour operators and leisure airlines

The launch of PaxRelax, a web based platform that will allow both airlines and tour operators to sell services such as choice of seats, catering, excess and/or special baggage was announced by Paxport. Launching customer, Thomas Cook Northern Europe will offer the service to its customers in Sweden, Denmark, Norway and Finland.

Hans Borg, Flight Planning and Contracting Manager for Thomas Cook Northern Europe states; “Our customers now expect to be able to make their own choice of services regardless of which airline they are flying with. PaxRelax makes it possible for us to meet the customer expectations without having to involve ourselves in all the complicated operational issues around flying a plane.”

Paxport Sales Manager Orjan Persson explains; “PaxRelax was developed according to the market and specifically Thomas Cook NE requirements. It is an open platform that will allow both tour operators and airlines to generate extra revenue. The product is now launched in Scandinavia, but there is already a considerable interest from both tour operators and airlines from the European continent and the UK. Because of the open structure the product is suitable for any market with an airline and/or tour operator structure.”

Enhancing the UN intiative for analliance of civilizations

The UNWTO ‘Conference on Tourism, Religions and Dialogue of Cultures’ taking place in Cordoba, Spain, underscores tourism’s potential to advance intercultural dialogue. “Tourists and visitors can become the connecting thread between cultures, bring economic development to remote or depressed regions, and reduce prejudice, distrust and hostility”, said UN Secretary General Ban Ki-moon in a special message delivered at the opening of the event.

Mr. Ban Ki-moon endorsed this first ever initiative and said “I strongly support the work of the United Nations World Tourism Organization, our most recent specialized agency, to promote peace and mutual understanding through the responsible and sustainable development of tourism. I commend UNWTO’s Global Code of Ethics for Tourism, which includes guidelines for reaching that goal.”

In an opening message, his Excellency Mr. Jorge Sampaio, High Representative for the Alliance of Civilizations of the UN said that “This meeting could not have been convened at a more relevant time, given the current state of the world. From all directions, we are confronted with rising intolerance, a shift toward increasingly hostile attitudes, and global instability. From a sustainable development viewpoint, an appropriate management of tourism should tend to reinforce its role as a powerful means to promote dialogue and understanding worldwide as well as to help consolidating stability and peace.”

UNWTO Secretary-General Francesco Frangialli said that “tourism is much more than just an economic matter. It shares with the great religions its environmental, social, ethical and cultural content. Tourism and religions share the use of the same cultural heritage built up in a complex relationship that is both constructive and conflictive at the same time.”

Convened by UNWTO with the support of the Government of Spain, this first ever Conference on this issue brings together around 300 participants from over 80 countries, including public and private stakeholders, the academic community and religious leaders from all faiths.

The three-day international event concludes on 31 October after having addressed the interrelations between tourism and religions from three different but complementary angles:

  • Dialogue of civilizations
  • Religious tourism; and
  • Sustainability of religious tourism destinations.

DOT gives quick release to fire victims in California

The immediate release of $1 million in emergency relief funds to California will help pay for urgent repairs to roads and bridges damaged by wildfires, U.S. Transportation Secretary Mary E. Peters announced. “We’re making this down payment because the last thing local officials should have to worry about is how to pay for needed road repairs,” said Secretary of Transportation Mary E. Peters.

“We’re taking uncertainty and delay out of the equation when it comes to repairing the state’s damaged highways.”

Peters said the $1 million quick release was intended to help California address repairs that need immediate attention, such as damaged or destroyed guardrails, signs or traffic signals, and to get essential sections of the highway system working again until the state completes a full assessment of the damage.

The FHWA’s emergency relief program provides funds to states for the repair or reconstruction of federal-aid highways damaged by natural disasters or catastrophic events. The program typically works on a reimbursable basis.

"Transportation is key for communities to get back up and running again after a natural disaster,” said FHWA Administrator J. Richard Capka.

Nearly half of all business travelers are afraid of flying

Fear of flying is normally associated with in-experienced travellers, but around 40% of regular, business travellers are similarly affected and British companies are not doing enough to help their employees. The claim comes from Flyingwithoutfear.com, a self help website providing free videos; audio files, blogs and other information to keep people overcome this problem. Ironically – or perhaps usefully - flyingwithoutfear.com is run by a pilot - Captain Keith Godfrey.

Captain Godfrey explains: “anxiety when travelling means business people are not performing at their best, although this is just the tip of the iceberg. Fear of flying can have a damaging effect on the traveller’s family too, either before a trip, or by transferring the far to children. Then there is the effect on the traveller’s self esteem and sense of guilt.”

Flyingwithoutfear.com helps first time and nervous travellers by enabling them to sample the sounds of take off, to watch footage of planes in flight, and to download information podcasts. “What we do is to dispel the myths about flying and to provide a friendly and supportive environment,” says Captain Godfrey.

“The new Corporate Manslaughter Act means that companies are responsible for their employees’ well-being. Flying remains one of the safest means of transport, but duty of care should mean helping travellers to fight what is, for many, a fact of life but one which can be overcome,” he concluded.

Singapore to showcase landmark tourism projects at WTM

The Singapore Tourism Board (STB) is attending World Travel Market (WTM), to showcase its 2008 landmark tourism projects and update the industry on its latest developments which are building on Singapore’s standing as a global city with buzz and vibrancy, brimming with diverse entertainment and lifestyle options.

In September 2008, subject to final safety approvals, Singapore will host the world’s first ever Formula One night race which will also be the first ever Formula One street race in Asia. The FIA gave the green light on Wednesday for Singapore to be the first country in the world to host the first night race in Formula One history.

Set against the backdrop of downtown Singapore, spectators will get a close-up view of the garden city as the circuit winds past historic landmarks such as the Singapore City Hall and The Fullerton Hotel, and modern buildings at Marina Bay, such as the Esplanade. Organisers are predicting the Formula 1 Singapore Grand Prix will be perhaps the most spectacular event in the history of the Grand Prix, and is expected to attract more than 80,000 spectators, of which up to 40 per cent will be visitors from all corners of the globe. Track action will be part of a whole package of entertainment and events which will make the GP an amazing two week-long festival of fun, high octane action across the island.

Opening in March 2008, the much anticipated Singapore Flyer will be Singapore’s most visible attraction offering visitors a breathtaking, unobstructed radial view stretching to 45km in circumference out over the South China Sea.

It will be the world’s highest observation wheel at 165 metres above ground, the height of a 42-storey building (by comparison the London Eye, is 135 metres above the ground). It will also offer an array of public facilities including a central atrium with a recreated Asian rainforest, outdoor amphitheatre, alfresco dining promenade running along the seafront, and offer high accessibility by train, bus, car and even boat.

Ms Divya Panickar Area Director for North and West Europe says: “2008 is a very exciting time for Singapore with visitors invited to take part in the spectacular Formula One™ Singapore Grand Prix in September - the first ever night race in Formula One™ history - as well as experience a selection of new luxury boutique hotels, bars, restaurants and attractions in the city. These exciting developments are a reflection of how the island-state is redefining itself into a vibrant, must-visit destination offering an array of world-class, unique and culturally-rich experiences.”

With record visitor arrivals expected for 2007, visitors to Singapore from the UK and Europe are a major contributing factor to Singapore’s continued success story.

Ms Panickar continued: “As Singapore accelerates the pace of its innovation, we are excited to be attending this year’s WTM to inform the travel industry of our current and future developments. At WTM it is essential that we strengthen and build our relationships with key operators as well as make new contacts in the emerging markets within Europe to further drive growth. We welcomed over 1.2 million visitors in 2006 from Europe, a record high and a significant increase of 7.5% over 2005 and 5.1% over 2004. This year we anticipate that the UK and European markets will once again out-perform their all time high, if our growth rate remains stable for the rest of the year.”

European visitor figures for January to August 2007 are up 6.2% year-on-year at more than 847,000 visitors. While UK visitors increased by 3.5% over the same period in 2006 with a record 333,000 visitors. Most other European markets are doing particularly well.

The Singapore Tourism Board (STB) set itself ambitious targets for 2007 - to achieve £4.5 billion in tourism receipts (TR) and attract 10.2 million visitor arrivals (VA). These targets are in line with achieving the STB’s long-term targets of £10.4 billion in tourism receipts (S$30 billion) by 2015. The Board is confident the visitor arrival targets will be met.

To catapult growth in visitor arrivals and to cater for consumers’ demands for new and unique experiences, Singapore is redefining itself as a vibrant global city resonating with energy and excitement. In the last year alone there has been an explosion of new hotels, bars, restaurants and spas and cultural attractions opening:

Hotels

The influx of new boutique and luxury hotels and resorts has continued this year with new offerings such as boutique hotels Naumi Hotel and The Link Hotel in Tiong Bahru. The Amara Sanctuary Resort Sentosa is a £20 million hill-top resort in the centre of Sentosa, Singapore’s premier island resort, which opened in September. Due to open in late 2007, the new boutique resort, with 125 rooms, will be built with the conservation of two colonial-era buildings. The St. Regis Singapore will also open in November 2007.

New Developments

Singapore’s new large-scale investments including the new developments in the Marina Bay area, including the Singapore Flyer and Gardens by the Bay, the two Integrated Resorts: The Marina Bay Sands™ and Resorts World at Sentosa, the rejuvenation of Orchard Road and the Sentosa harbourfront will help it to realise its tourism potential. Each will be critical in helping it to reach its aggressive Tourism 2015 tourism receipts target of £10.1 billion (S$30 billion).

Dnata establishes strong presence at first ever business travel show in Dubai

Dnata Travel Services is exhibiting this year in the first ever 'Business Travel Show' in the region, under the patronage of HH Sheikh Ahmed Bin Saeed Al Maktoum, the Chairman & Chief Executive, Emirates Airline & Group.

The UK's leading business travel event is being held in Dubai for the first time ever at the Madinat Arena. The show, running from the 29-30 October 2007, will serve the needs of all those who book or buy business travel for their organisation in the Middle East.

A new exhibition in this region, the event will offer opportunities to develop contacts with the world's leading business travel providers, and participate in educational seminars delivered by industry experts and travel buyers.

Iain Andrew, Divisional Senior Vice President Dnata Travel Services, said: “The decision to sponsor and exhibit was taken to position ourselves as the leading travel management in this region. It's also an opportunity for us to showcase our corporate products and services to the right audience both in the regional and international travel industry. Dnata is a one-stop-shop for all travel requirements - we were one of the first travel companies to set up in Dubai, we have now established our presence in other parts of the region such as Kuwait, Kingdom of Saudi Arabia, Afghanistan and soon in Oman and Qatar, and we feel it’s important to show our support to the industry by supporting the show.”

Mr. Andrew added: “The travel industry in Dubai is thriving and the city is without doubt an exciting destination with a huge amount of potential. In saying that, there is a definite need to educate and increase knowledge in this fast growing market.”

Dnata Travel Services covers 70 square meters of area and showcases the organisations corporate travel products and services. The participating divisions are: Dnata Corporate Travel, Dnata Government Travel, Dnata Travel UAE, KSA and Kuwait, Dnata World of Events, Dnata Contact Centre with its 24 hour service, Hogg Robinson Group (UAE) Gulf Ventures and MMI Travel.

The Dubai Business Travel Show will feature numerous exhibitors and a seminar programme comprising of eight educational sessions. These will run on each of those days teaching delegates the benefits of establishing travel management policies.

US Airways seeks Bogota Charlotte service

US Airways said it would apply for daily service between its hub in Charlotte, N.C., and Bogota, Colombia when the U.S. Department of Transportation (DOT) begins selecting carriers for 21 new flights to the South American nation.

"We applaud the Department of Transportation's success in securing new frequencies between the U.S. and Colombia," said Doug Parker, US Airways chairman and CEO. "Colombia is a very attractive market for US Airways and fits perfectly into our commitment to grow our international service.

"As a rapidly growing city with a vibrant economy Charlotte is primed for international expansion. With current service to 24 destinations in Latin America and the Caribbean, expanding our reach to South America is a logical step."

Details such as schedule, equipment and start date will be announced when the DOT institutes a carrier selection process.

"We have always received exceptional support in Charlotte from the management at Charlotte Douglas International Airport, elected officials, the business community and our loyal customers. We look forward to working together as we secure the necessary DOT approval for the new service," concluded Parker.

"Charlotte is a natural fit for a new international route to Bogota, as we both are growing centers of banking, international finance, commerce, energy, and engineering. I am delighted that US Airways has chosen to make Charlotte a gateway for its first South American expansion," said Charlotte Mayor Patrick McCrory.

Tiger Airways roars into Newcastle Airport

Tiger Airways has selected Newcastle Airport as its only New South Wales destination. Twice daily flights to Melbourne are scheduled to commence on 18 January 2008. Newcastle Airport, CEO, Paul Hughes said the announcement is a vote of confidence for the Airport and the region.

“The benefits of a new airline to the region are numerous; it will provide competition to the existing airlines servicing the airport, boost local tourism and provide local employment opportunities. The Airport is a committed driver of tourism to the region and already significantly contributes to the local economy. The announcement is a great achievement for Newcastle Airport, with inbound tourism benefits sure to provide further economic growth in the area,” said Paul.

This announcement will provide an additional 5,000 seats on the Newcastle-Melbourne route each week and increases the number of daily flights from seven to nine.

“The additional flights will create more choice and opportunity for the people of the Newcastle, Mid North Coast, Upper Hunter, Central Coast and surrounding regions. The airport has found that people will often travel to Sydney as Newcastle doesn’t have a flight time that suits them. Newcastle is now in a position to offer frequency to one destination that is comparable to some of Australia’s major airports. I would like to welcome Tiger Airways onboard as a contributor to Newcastle Airport’s future aviation growth and am confident the region will embrace the benefits the new airline and new services bring.”

Newcastle Airport joins a suite of Australian airports who are already in the Tiger ambush including Melbourne, Gold Coast, Sunshine Coast, Rockhampton, Mackay, Launceston, Perth, Alice Springs and Darwin.